People shop for clothing and beauty products at a Zudio store in Thiruvananthapuram, Kerala, India, on April 4, 2024. (Photo courtesy of Creative Touch Imaging Ltd./NurPhoto via Getty Images)
Null Photo | Null Photo | Getty Images
Shares of India’s largest fashion retailer, torrentCo., Ltd. plunged more than 11% on Tuesday after first-quarter sales growth fell short of profit targets.
Trent said on Monday that Tata Group’s standalone sales for the quarter ended June rose 19% from a year earlier to 56.66 billion rupees ($595 million).
Citigroup remains “cautious about torrent,” citing a weak trend in sales per square foot, increased competition, cannibalization effects and new store expansion in smaller cities. The company said in a report Monday that it expects sales to increase 23%.
Trent primarily operates fast fashion stores in India under the brands ‘Westside’ and ‘Zudio’. At the end of June, Torrent’s portfolio consisted of 1,312 stores, according to the company.
The company’s shares have risen 4.3% since the beginning of the year, even as India’s benchmark index Sensex has fallen nearly 8%.
